Black Hills operates a predominantly regulated utility platform with 227,100 electric and 1,138,152 natural gas customers, owning 1,386.4 MW of generation plus 9,478 miles of electric lines and 4,581 miles of intrastate gas transmission, providing relatively stable, rate-based earnings. The company's data center initiatives present considerable opportunities for new revenue streams, with a development pipeline exceeding 3 gigawatts and 600 megawatts planned for completion by 2030, including projects with Microsoft and Meta.
Cyborg Score Rationale
Black Hills achieved 2025 revenue of $2.31 billion (up 8.57%) and earnings of $291.60 million (up 6.77%), with a 6% 2026 EPS growth target and $4.7B capex plan including a 3 GW data center pipeline. The pending merger provides meaningful scale and diversification, though regulatory execution risks remain.
Top Insights
Pending all-stock merger with NorthWestern Energy (expected H2 2026) creates combined utility with ~2.2M total customers
3+ GW data center pipeline driven by Microsoft and Meta expansion with innovative Wyoming tariff model requiring minimal capital
2025 revenue of $2.31B (+8.6%) with 2026 consensus revenue of $2.56B expected (+11%)
2026 EPS guidance of $4.25-$4.45 (6% growth) with merger shareholder vote scheduled for April 2
Named Competitors
Xcel Energy — Large multi-state electric and gas utility
Avista — Regional electric and natural gas utility
NorthWestern Energy — Merger partner; combined utility forming largest utility by customer count
Recent Developments
(February 2026) Reported 2025 adjusted EPS of $4.10; initiated 2026 guidance of $4.25-$4.45
(February 2026) Merger with NorthWestern Energy shareholder vote scheduled for April 2, 2026
(January 2026) Board approved dividend increase to $0.703 per share
(2025) Announced 3 GW data center development pipeline with major tech partnerships
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